Medalist Diversified, Inc. (NASDAQ: MDRR) Announces DST Sponsor Platform; Inaugural Tesla-Leased Offering Available to Accredited 1031 Investors

Key Terms

delaware statutory trust financial

A Delaware statutory trust is a legal structure created under Delaware law that holds assets—often real estate or income-producing property—and issues shares of ownership to investors. It separates the assets and liabilities of the trust from individual investors, like a shared landlord that collects rent and pays expenses, and matters to investors because it can simplify ownership, limit personal liability, and make it easier to receive steady income or trade ownership stakes without managing properties directly.

dst financial

A Delaware Statutory Trust (DST) is a legal structure that lets multiple investors own fractional interests in income-producing real estate managed by a trustee, similar to co-owning a rental property without handling day-to-day tasks. It matters to investors because it offers a way to diversify into commercial real estate, collect rental income, and potentially defer capital gains taxes through certain tax-advantaged exchanges, while leaving property management to professionals.

1031 exchange financial

A 1031 exchange is a U.S. tax rule that lets an investor swap one investment property for another similar property and delay paying capital gains tax on the sale. Think of it like trading one house for another without cashing out: by postponing the tax bill, investors can keep more money working in real estate, which affects cash flow, reinvestment decisions, and long‑term returns.

net-leased financial

Net-leased describes a commercial property arrangement where the tenant not only pays rent but also assumes some or all ongoing property costs such as taxes, insurance, and maintenance. For investors, this setup is like leasing out a house where the renter also pays the utilities and yard work: it usually produces steadier, more predictable income and shifts operating cost and vacancy risk away from the landlord, affecting valuation and return expectations.

loan-to-value financial

Loan-to-value is the percentage that shows how large a loan is compared with the appraised value of the asset backing it, for example a house or other property. Investors care because a higher percentage means more of the asset’s value is borrowed — like buying a car with almost no down payment — which increases the chance of loss for lenders and can lead to higher interest rates, stricter terms, or greater risk for holders of related securities.

accredited investors financial

Accredited investors are individuals or entities considered to have enough financial knowledge and resources to understand and handle more complex and risky investments. They are often allowed to participate in private investment opportunities that are not available to the general public, similar to how experienced players might access exclusive clubs or events. This status helps ensure that investors can manage potential risks and rewards appropriately.

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Richmond-based public company positions DST sponsorship as a core strategy.

RICHMOND, Va.--(BUSINESS WIRE)-- Medalist Diversified, Inc. (NASDAQ: MDRR) (“Medalist” or the “Company”) today announced its Delaware Statutory Trust (“DST”) sponsor platform, operated through its wholly-owned subsidiary, MDRR Sponsor TRS, LLC (the “Sponsor”). Medalist, through the Sponsor, provides a publicly-traded platform to accredited 1031 exchange investors and their advisors, featuring SEC-reporting transparency, independent board governance and third-party due diligence on every offering.

The DST platform’s inaugural offering, MDRR XXV DST 1, is currently available only to accredited investors through registered broker-dealers and registered investment advisors. The DST offering is structured around a single-tenant, net-leased sales, service and delivery facility in Pensacola, Florida, leased to Tesla, Inc. (NASDAQ: TSLA). Tesla is rated investment-grade by S&P Global Ratings.

MDRR XXV DST 1 has completed independent third-party due diligence through recognized industry service providers, including FactRight and Mountain Dell Consulting. The DST property is a 45,461-square-foot facility that serves as Tesla’s sales, service and delivery hub for Northwest Florida and Southern Alabama and includes 20+ service bays, eight Supercharger stations, and more than 150 parking spaces. The offering is structured with approximately 47% loan-to-value financing and includes fixed-rate debt with coverage metrics consistent with institutional underwriting standards.

“We believe that Medalist is building a publicly-traded sponsor platform where investors, advisors, and broker-dealer partners have clear visibility into the sponsor’s financials through our publicly available SEC filings,” said Brent Winn, Chief Financial Officer.

“We are focused on sourcing investments characterized by institutional quality tenants, long-term leases and conservative use of leverage. For example, the MDRR XXV DST 1 investment was structured with a 47% loan-to-value ratio. Our approach emphasizes credit quality, lease structure, and capital discipline as core elements of our investment process,” said Peter Elwell, Managing Director, DST Investments.

The Sponsor continues to develop its broker-dealer and registered investment advisor distribution network and plans to continue to focus its underwriting strategy on single-tenant and multi-tenant commercial real estate leased to institutional tenants, principally in the Southeast, mountain states, and California.

“MDRR XXV DST 1 is currently being offered through participating broker-dealer and advisor relationships as we continue to expand our distribution network. We aim to provide our partners with access to institutional real estate investments through a platform operated within a publicly traded company, with public disclosures available regarding our financial condition and governance,” said Ron Nielsen, Executive Vice President, Sponsor Operations.

About Medalist Diversified

Medalist Diversified, Inc. (NASDAQ: MDRR) is a publicly-traded real estate company headquartered in Richmond, Virginia. Medalist sponsors DST offerings through its wholly-owned subsidiary, MDRR Sponsor TRS, LLC, targeting commercial real estate leased to institutional tenants, principally in the Southeast, mountain states and California. The Company reports quarterly and annually under the Securities Exchange Act of 1934, is audited by Cherry Bekaert LLP, and is overseen by a five-member board of directors, four of whom are independent. Medalist currently operates with no corporate-level debt and an estimated $40 million in sponsor-level net asset value. For more information, visit www.medalistdst.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s DST sponsor platform, planned and future offerings, 2026 pipeline, targeted capital raise, and target launch timelines. Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied, including, without limitation, market conditions, tenant credit and performance, availability of acquisition opportunities, interest rates, regulatory developments, and investor demand. Medalist undertakes no obligation to update forward-looking statements. Investors should review the risks discussed in the Company’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q.

This announcement is not an offer to sell or a solicitation of an offer to buy any security. Any offering of DST interests is made only through a confidential Private Placement Memorandum provided to accredited investors who meet certain requirements and is subject to the risks and terms set forth therein. Prospective investors will be required to verify their accredited investor status in accordance with applicable securities laws. DST investments involve a high degree of risk, they are speculative, illiquid, and subject to risk of loss, including loss of principal and are not suitable for all investors. Projected distributions and other performance metrics are targets only, are based on assumptions set forth in the Private Placement Memorandum and are not guaranteed. Prospective investors should consult qualified legal, tax, and financial advisors before investing. The information set forth herein is qualified in its entirety by the Private Placement Memorandum. All prospective investors must read the Private Placement Memorandum and no person may invest without acknowledging receipt and complete review of the Private Placement Memorandum.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260506855734/en/

Media Contact
Ron Nielsen, Executive Vice President, Sponsor Operations
Medalist Diversified, Inc. | rnielsen@medalistdst.com

Investor Contact
Brent Winn, Jr., Chief Financial Officer
Medalist Diversified, Inc.

Source: Medalist Diversified, Inc.